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Regulators deny construction permit for LNG plant

May 18, 2010

by Becky Bohrer
The Associated Press
Tuesday, May 18, 2010

JUNEAU, Alaska -- Federal regulators have denied a request by Yukon Pacific Co. to again give it more time build a liquefied natural gas plant in south-central Alaska.

The denial by the Federal Energy Regulatory Commission creates new questions about the prospects for an LNG option as proposals to build a major pipeline that would carry natural gas from the North Slope to domestic or overseas markets are shopped around.

The commission, in its denial letter last week, said environmental and regulatory standards have changed since the company first obtained a permit in 1995, and those issues need to be addressed.

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An attorney for Yukon Pacific said he hasn't spoken with company officials about their possible next step. Patrick Rock says the denial was a bit surprising.

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